NE Watch Desk
Taiwanese electronics manufacturing
giant Foxconn, in a groundbreaking move, is set to collaborate with HCL Group
to set up a semiconductor assembly and testing facility in Bharat. The
announcement, made through a regulatory filing by Foxconn, marks a significant
step towards bolstering Bharat’s presence in the semiconductor manufacturing
arena.
Through this partnership, an outsourced
assembly and testing (OSAT) unit will come up in Bharat – encompassing the
packaging, assembly, and testing of silicon wafers to produce fully functional
semiconductor chips.
As per the regulatory filing, Foxconn’s Bharat
unit will secure a substantial 40 per cent stake in this joint venture, committing
a noteworthy investment of $37.2 million. In a statement, Foxconn emphasized the
investment aims to build an ecosystem and enhance supply chain resilience for
the domestic industry.
While HCL Group is a crucial
collaborator in this venture, financial details of its involvement have not
been disclosed.
The exact location of this semiconductor
facility is yet to be known. Foxconn, however, has broader aspirations in Bharat,
exploring the possibility of establishing a semiconductor fabrication plant.
The government’s offer of $10 billion in incentives to boost local chip
manufacturing has provided impetus to such ventures.
Notably, Foxconn faced challenges in its
previous semiconductor initiatives in Bharat, experiencing setbacks due to a
high-profile split with local conglomerate Vedanta in a $19.5 billion
chipmaking joint venture last year.
The current collaboration with HCL Group
signals Foxconn’s renewed efforts to establish a foothold in the burgeoning
Indian semiconductor market. This strategic move aligns with Bharat’s ambitions
to emerge as a significant player in global semiconductor manufacturing and
technology development.
